ECB and BoE keep interest rates unchanged

The European Central Bank (ECB) and Bank of England have left interest rates unchanged.

In the UK the nine-strong Monetary Policy Committee left interest rates at 0.5% and opted to keep gilt purchases at £375 billion. The Bank did not issue a statement alongside the decision, nor offer any insight into how it intends to amend 'forward guidance'.

On the continent, the ECB has kept interest rates unchanged at 0.25%.

The 24-strong governing council also left the deposit rate at zero, alongside the marginal lending rate at 0.75%.

The central bank, led by Mario Draghi (pictured) continues to expect inflation to rise from a four-year low towards the ECB's target of just under 2%.

However, January saw inflation fall to 0.7%, giving many cause for concern that deflation could take hold. The eurozone is also facing volatile global markets as the Federal Reserve starts to unwind its accomodative monetary policy.

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